Law No. 148 of 2019

Issuing the Social Insurance and Pensions Law

In the name of the People, the President of the Republic, the House of Representatives has decided the following law, which we hereby enact:

(Article 1)

The provisions of the accompanying law shall apply to the social insurance and pensions system.

(Article 2)

The National Social Insurance Authority shall assume responsibility for disbursing the rights stipulated in social insurance-related legislation that were previously administered by executive authorities, at the expense of the Public Treasury. The executive regulations of the accompanying law shall include the rules and procedures for implementing the provisions of this Article.

(Article 3)

The application of the provisions of the accompanying law shall not prejudice the provisions of laws governing the employment affairs of personnel in special cadres. The decrees stipulated in these laws and employment systems shall remain in effect, and the Public Treasury shall bear the cost differences resulting therefrom, in accordance with the provisions of the accompanying law.

(Article 4)

The regulations and decisions issued to implement the provisions of laws related to social insurance shall remain in effect, insofar as they do not conflict with the provisions of the accompanying law, until its executive regulations are issued.

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(Article 5)

The Prime Minister shall issue the executive regulations of the accompanying law within six months from the date of enactment of this Law.

(Article 6)

Any provision conflicting with the provisions of this Law regarding those subject to its rules is hereby repealed.

(Article 7)

This Law shall be published in the Official Gazette and shall take effect from 1/1/2020, except for Articles (111, 112, 113, and 114), which shall take effect from the day following its publication.
This Law shall be sealed with the State Seal and enforced as one of its laws.
Issued at the Presidency on 18 Dhu al-Hijjah 1440 AH
(Corresponding to 19 August 2019 AD)
Abdel Fattah El-Sisi

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Social Insurance and Pensions Law

Chapter One Scientific Definitions and Terminology

Article (1)

For the purpose of applying the provisions of this Law, the following words and expressions shall carry the meanings indicated alongside each:

1. The Insured: Any person subject to the provisions of this Law until the actual entitlement to their insurance rights for the duration of their participation in old-age, disability, and death insurance is realized.

2. Employer: Any natural or legal person who employs one or more workers subject to the provisions of Clause (First) of Article (2) of this Law.

3. The Authority: The National Social Insurance Authority.

4. The Board of Directors: The Board of Directors of the National Social Insurance Authority.

5. The Experts Committee: A committee consisting of an expert, actuaries practicing in accordance with the provisions of Law No. 10 of 1981 concerning supervision and oversight of insurance entities, and financial experts nominated by the Board of Directors, including a representative from the Ministry of Finance specialized in the committee's work, nominated by the Minister of Finance.

6. Inflation Rate: The Consumer Price Index at the national level issued by the Central Agency for Public Mobilization and Statistics, determined by the monthly average of inflation rates over the preceding year, fixed in July of each year, and issued by a decision of the Authority's Chairman.

7. Actuarial Discount Rate: The inflation rate multiplied by a ratio of (1/1).

8. Contribution Wage: The monetary compensation received by the insured from the categories referred to in Clause First of Article (2) of this Law from their primary workplace in exchange for their original work.
   The elements of the contribution wage shall be determined as follows:

   • 1- Functional wage.
   • 2- Basic wage.
   • 3- Supplementary wage.
   • 4- Incentives.
   • 5- Commissions.

9. The Allowance, provided that the following conditions are met regarding it:

   (a) That it has become customary for the establishment's workers to pay it based on a fixed percentage in advance from the amounts due to workers.

   (b) That it has a common fund within the establishment where its proceeds are placed for distribution among workers.

   (c) That there are established rules between the employer and workers determining how it is distributed among them.

10. Allowances, except for the following allowances which shall not be considered part of the contribution wage:

(a) Transportation allowance, travel allowance, meeting attendance allowance, and other allowances paid to the insured to cover expenses incurred due to the requirements of their official duties, excluding the uniform allowance.

(b) Housing allowance, clothing allowance, transportation allowance, and other allowances paid in exchange for in-kind benefits.

(c) Allowances entitled to as a result of the insured being seconded for part of their time within or outside their primary workplace.

(d) Allowances entitled to the insured to cope with the cost of living outside the country.

11. Additional Wages.

12. Compensation for Extraordinary Efforts.

13. Cost of Living Allowance.

14. Social Bonuses.

15. Additional Social Bonuses.

16. Grants.

17. Group Bonuses.

18. Amounts exceeding the maximum basic wage.

19. Special bonuses that have not been incorporated into the basic wage.

The executive regulations of this Law shall determine the minimum and maximum contribution wage.

19. Contribution Income: The income chosen by the insured from the categories stipulated in Clauses Second and Third of Article (2) of this Law, which shall not be less than the minimum contribution wage nor exceed the maximum thereof. The executive regulations of this Law shall determine the contribution income table, other conditions to be observed when determining contribution income, as well as the rules and procedures for its amendment.

20. Retirement Age: Sixty years for Clauses First and Third of Article (2) of this Law, and sixty-five years for the insured referred to in Clauses Second and Fourth, subject to the provision of Article (41) of this Law.

21. Pensioner: The person for whom the condition of pension entitlement has been realized for themselves in old-age, disability, and death insurance.

22. Permanent Disability: Any disability resulting in total incapacity that permanently prevents the insured subject to Clause First of Article (2) of this Law from performing their original work.

23. Life Annuity: The present value of a one-pound pension installment that the pensioner will receive upon retirement, for the pensioner and beneficiaries, for life.

24. Work Injury: Suffering from one of the occupational diseases listed in Table No. (1) attached to this Law, or injury resulting from an accident occurring during or as a result of work. For this purpose, any accident occurring to the insured during their direct commute to or from work shall be considered a work injury, provided the commute is without delay, stop, or deviation from the normal route. Injury resulting from work-related stress or exhaustion shall be considered a work injury provided it meets the conditions and rules specified in the executive regulations of this Law in coordination with the Chairman of the Board of Directors of the Authority concerned with health insurance.

25. Injured Person: The person who has suffered a work injury.

26. Ill Person: The person who has suffered an illness or accident other than a work injury.

27. Disabled from Earning: Any person suffering from a disability that completely prevents them from working or reduces their work capacity by at least (50%), provided that this disability is congenital or results from an accident or illness contracted by the person before the age of sixty.

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Article (2)

The provisions of this Law shall apply to the following categories:

First - Employees Working for Others:

1. Civil employees in the state administrative apparatus, public bodies, public institutions, and their economic units, including appointed heads and board members of Public Sector companies.

The provisions of this Law shall also apply to temporary, casual, and seasonal workers in the entities referred to in Clauses (1, 2).

2. Workers in the private sector subject to the Labor Law, provided that the employment relationship between the insured and the employer is regular. This condition is exempted for contract workers, loading/unloading workers, fishing workers, and road transport workers. The executive regulations of this Law shall determine the necessary rules and conditions for considering the employment relationship regular.

3. Persons engaged in domestic service work, excluding those working inside private residences as determined by the executive regulations of this Law.

4. Members of the employer's family who work for and are actually supported by them, subject to the conditions stipulated in Clause (3). It is required for Clauses (3, 4, 5) that the insured be under eighteen years of age.

In the event the insured works for more than one employer, only the duration of work with one employer shall be counted towards the contribution period. The executive regulations of this Law shall determine the rules and provisions for calculating the work duration subject to this Law.

Second - Employers and Those Deemed Equivalent:

1. Individuals practicing commercial, industrial, or agricultural activities, artisans, and others providing activities or services on their own behalf, provided their activities are regulated by special laws or require a license from the competent administrative authority.

2. General partners in personal partnerships and limited partnerships, heads and board members, and appointed members in companies covered by the private sector, and managers in limited liability companies.

3. Owners of sole proprietorship companies.

4. Practitioners of free professions and members of professional syndicates. The date each profession begins to benefit from the provisions of this Law shall be determined by a decision of the Authority's Chairman.

5. Members of production cooperatives working on their own behalf.

6. Owners of agricultural land measuring one feddan or more.

7. Possessors of agricultural land measuring one feddan or more, whether owners, tenants paying rent, sharecroppers, or both.

8. Owners of built-up properties whose share of annual income is not less than the minimum contribution wage. The executive regulations of this Law shall determine the conditions and rules for those subject to this Clause.

9. Owners of mechanical transport vehicles for passengers or goods, including land, river, sea, and air transport owners.

10. Commercial agents.

11. Owners of mechanical or sailing fishing boats.

12. Legally appointed notaries and authenticators other than monks.

13. Imams and religious scholars.

14. Tour guides and antiquities guides.

15. Reciters and artists.

16. Heads of employers in sole establishments. The executive regulations of this Law shall determine the conditions for subjecting them.

17. Owners of domestic, environmental, rural, and family industries.